Selecting the right email marketing software can be a daunting task, even when you have a clear understanding of your needs. However, many Request for Proposal (RFP) processes fail due to unforeseen blind spots that email marketers might not even realize they should be considering.
When embarking on an email software RFP, marketers typically start with a strong grasp of their existing Email Service Provider (ESP) pain points.
Common pain points with your current ESP can include:
- Missing functionality within the platform,
- Ongoing issues with the tool or services provided,
- A feeling that you might be paying more than necessary.
In addition to these known challenges, email marketers also have questions they know they don’t have answers to. These are the “known unknowns.”
Email marketers often have questions going into an RFP like:
- Where does the market stand in terms of pricing?
- Can any vendor truly solve my specific pain points?
- Who are the leading email vendors in today’s landscape?
These are the fundamental questions that the RFP process itself is designed to address.
Beware of Your RFP Blind Spots
However, a third category of challenge often lurks within every ESP RFP: the “unknown unknowns” or blind spots. These are the critical factors an email marketer isn’t aware they should be considering, and they can lead to a stalled RFP or, worse, a poor final decision. Let’s delve into several of these common blind spots.
1. Significant Differences Between ESPs Are Often Underestimated
Most ESPs will naturally claim to be the best, and many industry analysts offer their opinions on top performers. However, neither of these perspectives directly tells an email marketer which ESP is truly best for their specific needs. This is because vendors are reluctant to admit limitations that might reduce their chances of winning business.
This can lead to marketers including ESPs in their RFP that are not a good fit, simply because they are currently “hot” in the marketplace – a phenomenon sometimes called the “Flavor of the Week” syndrome.
Including an ill-suited ESP in an RFP wastes everyone’s time, but even worse is when such a vendor actually wins the selection process.
Including the Wrong ESP, Not Knowing the Right One
How could the wrong ESP ever win? It’s surprisingly easy if a marketer hasn’t created a well-defined requirements document or if they prioritize factors like low initial cost above everything else.
The truth is, no one can be expected to know all the intricate differences between every ESP. This is precisely why considering expert guidance, from someone deeply familiar with the market, can be invaluable in selecting the most appropriate vendors for your RFP. Many organizations find that expert advice leads them to discover and include vendors they might not have initially considered, ultimately leading to a more successful outcome.
2. ESP Pricing Models Are Increasingly Complex and Hard to Compare
ESP pricing models have evolved significantly, becoming much more diverse and intricate. Vendors have become adept at making direct, side-by-side price comparisons almost impossible. Fifteen years ago, an email marketer could largely compare Cost Per Mille (CPM) to CPM to determine pricing advantages.
However, in recent years, vendors have introduced various additional pricing categories. These can include data storage fees, subscriber fees, and technology platform operations. There’s a notable lack of consistency, with some vendors charging for specific items while others do not.
Avoid “Whack-a-Mole” Pricing
Many of these new fees are designed to allow ESPs to present lower CPMs, hoping a prospect’s focus will remain solely on that single number. During negotiations, it’s common to see vendors react to requests to lower one fee by subsequently raising another. This can be described as “whack-a-mole” pricing.
In reality, the CPM listed in most pricing proposals today is often only a partial CPM. Your actual CPM is your annual email volume divided by your total annual fees. Creating a Common Pricing Template can help standardize proposals, forcing vendors to present pricing in a consistent format for clearer side-by-side comparisons.
Waiting to understand various pricing models until you’ve already requested proposals in your RFP can put you at a disadvantage. Accurate comparisons may be hindered by a lack of understanding of how each vendor arrived at its final cost.
Not fully grasping pricing models can be particularly problematic if you select an ESP that requires upfront annual payment for your email program. Imagine paying a substantial sum before you’ve even begun migrating from your old vendor (while still paying for the old service!). Understanding such payment terms in advance is crucial, and your CFO would certainly find that information useful!
3. Marketing and IT Teams Often Have Divergent Views on the Ideal ESP
This scenario is common: a significant disconnect between marketing and IT regarding what constitutes the ideal ESP. Campaign production teams also often have their own distinct ideas about the optimal solution.
Such divisions can lead to vigorous disagreements over vendor choice and entire departments feeling dissatisfied with the final selection. Understanding each department’s priorities in advance can prevent much grief during the RFP process and after the final decision. Some vendor solutions are better equipped to bridge gaps between teams than others. Depending on which stakeholders hold the most sway within your company, the list of vendors you consider could change dramatically.
Based on industry experience in managing email RFPs, here’s a list of each group’s general priorities:
Marketing VPs and Marketing Directors Priorities
- Huge emphasis on the stability and reliability of the platform.
- Interested in the availability of value-added services like analytics and creative support.
- Critical need to use various sources of data in real-time before it becomes stale.
- Also focused on robust reporting and analytics capabilities.
IT Priorities
- Tend to focus on the ability of email vendors to handle data “where it lies” (as opposed to marketing, which often cares less about data movement) and overall data security.
- This often leads them to solutions like an enterprise suite such as Adobe, or a hybrid platform like MessageGears.
- Or they gravitate towards email relay solutions that offer easy connections and extensive APIs, such as SparkPost and SendGrid, which typically don’t come with marketer-friendly user interfaces. For marketer-friendly UIs, check out customer engagement platforms like Iterable, Braze, or Customer.io.
Campaign Production Priorities
- Top priorities include how intuitive and usable the platform itself is.
- Ability to perform all necessary tasks without involving IT or the ESP’s services team.
- Speed of the platform in executing campaign production operations.
Pro tip: It’s an exceedingly good idea to ensure your campaign production team supports your choice of vendor. They’re the ones who will be using it daily and aren’t necessarily going to fully adopt a platform they don’t like.
Shine a Light on Your Selection Blind Spots
You may have numerous blind spots—things you don’t know you don’t know—when it comes to selecting an ESP. However, with the right support, you can ensure your RFP process proceeds smoothly.
For all the reasons outlined—the significant differences between ESPs, the complexity of pricing models, and the differing requirements of your internal stakeholders—it makes considerable sense to seek expert guidance before initiating your own ESP RFP. Consider engaging a selection partner who offers a deep understanding of the various vendors’ strengths and weaknesses. This can ensure you invite the vendors best suited to address your unique requirements and ultimately secure an optimal deal.